Hindustan Zinc to Raise Funds Worth ₹500 Crore Via Private Placement

Fundraising Details

On March 10, 2025, Vedanta Group Ltd announced the approval of an issuance of unsecured, redeemable, rated, listed, non-convertible debentures (NCDs) amounting to ₹500 crore through private placement. This strategic financial move was sanctioned by the company’s Committee of Directors.

The Non-Convertible Debentures (NCDs) will be structured into three Separate Transferable and Redeemable Principal Parts (STRPPs): STRPP 1 and STRPP 2, each for ₹100 crore (10,000 debentures), and STRPP 3 for ₹300 crore (30,000 debentures), totalling 50,000 debentures. The total principal amount issued will be capped at ₹500 crore.

Power Delivery Agreement Details

Hindustan Zinc has significantly boosted its commitment to renewable energy by signing an expanded power delivery agreement (PDA) with Serentica Renewables. The new PDA, increasing their round-the-clock renewable energy capacity to 530 MW (from 450 MW), will cover over 70% of the company’s total power needs.

Notably, this agreement guarantees a minimum of 315 MW of uninterrupted power every 15 minutes, a pioneering approach for round-the-clock renewable energy in India. The project, involving new solar, wind, and energy storage installations across multiple locations, is slated for completion by 2027 and will operate under a captive structure.

Share Price Performance

At 1:32 PM on March 11, 2025, Hindustan Zinc Ltd shares traded 0.26% down at ₹425.35 per share on the NSE.

Conclusion

This NCD issuance reinforces Vedanta Group’s strategic financial planning, ensuring liquidity and supporting its long-term growth objectives. Vedanta Group is a globally diversified natural resources company headquartered in India. It operates in key sectors including metals, mining, oil & gas, and power, playing a crucial role in India’s industrial and economic growth.

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